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  • The debate picks up over Coca-Cola [View news story]
    Easy decision this month to dump all KO I owned...overvalued, high PEG ratio and PE ratio, high dividend payout ratio, high Enterprise Value to EBITDA, low revenue growth, head on collision with developed countries' demographic shift to healthier foods and beverages. So, I don't sweat the's not my money anymore!
    Apr 29, 2014. 11:45 AM | 1 Like Like |Link to Comment
  • McDonald's And Menu Simplification: Part 1 Of 3 Ways To Tell When The Worst Is Over [View article]
    While consolidating the menu might help, the real problem is that consumer preferences are moving away from MCD (and KO), and toward "fresh", "natural", "healthy", etc. Further, the PEG ratios for MCD and KO, the forward PEs, and the trend in earnings forecasts are all unfavorable. Think what price MCD and KO would have to sink to with forward PEs of 14, PEGs of 1.5, where lots of other strong companies are priced. I've dumped my MCD and KO due to consumer preferences moving away from these names, and very poor forward PE and PEG valuations - also Enterprise Value to EBITDA valuations. MCD and KO are simply poor values, falling behind US and developed nation health awareness.
    Apr 28, 2014. 05:00 PM | Likes Like |Link to Comment
  • Coca-Cola: A Buy Despite Growth And Equity Compensation Plan Concerns [View article]
    Look at Coke's Enterprise Value/EBITDA....with 2% revenue growth, is such a high valuation merited? Consider what happens as more Americans and people in other countries discover the poisonous effect of high fructose corn syrup, whether in sparkling or flat beverages like sports drinks. Sure, yield is nice, but can 7% dividend growth be sustained on 2% unit volume growth? My math's not that creative. I've bought Coke at trailing PEs below 18, sold when over 22, recently lower due to slowing growth....not a trader, but simply focused on what is a fair price. Too many better choiced exist at lower EV/EBITDA with better growth, less risk from consumers seeking healthy foods and beverages and the certain eventual massive outcry against high fructose corn syrup.
    Apr 15, 2014. 12:32 PM | Likes Like |Link to Comment
  • Coca-Cola: Can You Beat The Real Thing? [View article]
    Moving to real sugar would show concern over health issues - high fructose corn syrup is poison to the body. Is Coke bold enough to stop using HFCS? Sales would soar! Doubting they will actually do this, I just dumped all my Coke shares after decades of accumulating, selling at PEs over 20, re-buying below 20. The PEG ratio is awful, the dividend payout ratio is too high to allow for meaningful share repurchases and dividend growth. The Kuerig purchase is folly...really, who is doing to fool with the equipment/time/mess of making their own Coke? Sad I was slow to dump KO - felt it was the right thing to do above $40, waited until $39... Coke and other products with real sugar is the only way for Coke to restore sales growth, as the whole world is learning what many in the US know...high fructose corn syrup is poison to the body!
    Apr 7, 2014. 10:02 AM | Likes Like |Link to Comment
  • A lot to like about Sysco-US Foods combination [View news story]
    While the company talks about expanding territory, what really happens is greatly improved route density...more clients per trip, trucks are more full, some routes will expand volume to larger trucks...all efficiencies in delivery - revenue per mile. Some distribution locations will be consolidated, or at a minimum, routes restructured to utlize the closest or otherwise most advantageous distribution location. Then, there "just might" be some increased pricing power by having eliminated the primary competitor on many routes. Face it, this is a huge market share enhancement in many markets, and pricing will improve. "In market" mergers can provide great expense management advantages, and this one merger will achieve that to a large degree. The combined entity will be far more profitable from increased operational efficiencies alone, plus whatever pricing improvement comes along. (To management: Focus on client satisfaction first, delay any pricing increases that are not cost driven for at least a year. Win the hearts of clients, and this will be a great merger.)
    Dec 9, 2013. 02:50 PM | Likes Like |Link to Comment
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